Everything you need
to know to START
Crypto trading by
@CryptoGirlNova
Visit me on twitter
INTRODUCTION
The goal of this e-book is to give you all the
basic information you need in order to enter
the cryptocurrency markets.
There are some crucial factors you have to
understand before you can start trading.
In this e-book I will cover all those subjects. At
the end of this book, you will have a better
understanding of the markets. We’ll start off
with the basics of cryptocurrency and guide
you to the point where you can enter and
manage trades independently.
Advanced technical and fundamental
analysis is what drives the passion of a
trader. What I expect from you is that you
read this ebook thoroughly because it
contains information that is very important in
order to benefit from the markets.
02
WHAT IS A
CRYPTOCURRENCY?
A cryptocurrency is basically a digital form of
rate of 10 000 euro for every Bitcoin. You
now have 0.1 bitcoin. 2 weeks later the
exchange rate moved from 10 000 euro to 15
000 euro for every bitcoin. Instead of getting
1000 euro back, you will actually receive
1500 euro. You’ve made a profit of 500 euro
by simply holding your money in bitcoin while
the exchange rate changed.
cash that can be used online for buying
goods and services. Because
This is essentially how trading works in the
cryptocurrencies are digital, they can also be
cryptocurrency market. We buy a certain
sent to anyone all over the world.
amount of a cryptocurrency and hold it while
the exchange rate moves. We then exchange
Because the total number of most
it again, making money along the way.
cryptocurrencies are limited, an increase or
decrease in demand leads to a direct
Online trading gives you the ability to do
change in price. People are willing to pay
these transactions from the comfort of your
more or less to own them.
home or anywhere in the world as long as
you have an internet connection.
Imagine that you live in Europe and you buy
1000 euros worth of Bitcoin at the
Examples of Cryptocurrency
Cryptocurency is digital
money created from
code.
The cryptocurrency
Cryptocurrency is an
economy is monitored by
encrypted string of data or
protocol.
one unitof currency.
a peer-to-peer internet
hash, encoded to signify
Examples of Cryptocurrency
Ripple
Bitcoin
Ethereum
03
BORROMEAN
RINGS OF TRADING
The Borromean Rings of Trading give you a perfect representation what trading is all
about. It is separated into 3 different rings that stand for: trading analysis, risk
management and trading psychology.
Trading
Risk
Management
Psychology
Successful Trader
The successful trader finds himself in the
see that even if you have the best
middle with a perfect balance of 3 rings.
trading strategy in the world, trading
itself is only 33% of the total picture.
The successful trader masters each ring
separately and is also perfectly able to
Give 10 traders the same strategy
balance them out.
and you’ll get 10 different results. Simply
because risk management and the
Each ring is 33% of the total image of
emotional aspect also play a vital role
trading. With this representation you can
in trading.
04
TRADING
A trader is consistantly analyzing the
markets to find the best trading
opportunities.
They use a proven system that has been
backtested countless of times through
either fundamental or technical analysis.
1
While each trader has their own
confirmation, they can also use a
combination of those.
05
RISK MANAGEMENT
As mentioned earlier, give 10 traders the
Risk management is key to trading. Every
same trading strategy and you’ll get 10
trader makes losing trades sometimes.
different results. Risk management plays
But good traders respect and manage
an important factor in this outcome. Risk
their risks. You must be able to manage
management is one of the most
your risk and cut losses so you can
overlooked aspects of trading.
continue to trade. Managing risk also
means protecting your capital.
2
06
THE POWER OF
RISK / REWARD
When trading the markets, we want to
how powerful of a role it can play.
develop and set a clear set of rules that
Risk/reward is probably the closest you’ll
we are going to follow when making
get to the holy grail of trading.
trading decisions. An example of one of
those rules is that we are never going to
In the table below you can see how
risk more than a certain percentage of
much your profit/loss or risk/reward ratio
our entire trading capital on a single
needs. As you can see, if you have a 3 to 1
trade. Another rule is that we are only
risk reward ratio you only need to win
going to take profit if the profit is at least
25% of your trades to break even.
3 times as big as the risk on that trade.
Basically a good risk to reward enables
If you give risk/reward the thought that it
you to have more losing trades than
deserves you will soon understand just
winning trades.
RISK VS REWARD
RISK
20%
REWARD & WIN RATE
30%
40%
50%
60%
Not Profitable
Not Profitable
Not Profitable
Break Even
Profitable
Not Profitable
Not Profitable
Profitable
Profitable
Profitable
Not Profitable
Profitable
Profitable
Profitable
Profitable
Break Even
Profitable
Profitable
Profitable
Profitable
Profitable
Profitable
Profitable
Profitable
Profitable
07
TRADING
PSYCHOLOGY
While trading, a lot of emotions will come to surface. It
is how you manage and approach those emotions
that is going to determine whether you fail or succeed
at trading. Managing your emotions is a skill that
trading will teach you. This is an important skill to have
in your arsenal. Not only in trading, but also in life.
3
08
THE ROLLERCOASTER
OF TRADING EMOTIONS
The market doesn’t care and is
If you are building your trading portfolio
unemotional, so you have to become
try to look at it from a distance and get
unemotional (in trading).
emotionally detached from it.
It is only by eliminating emotion that one
Accept that losses are part of the game.
is going to be able to become
consistently profitable at trading and
Just be disciplined and move on to the
portfolio management.
next trade without thinking much about it.
Thrill
Excitement
Euphoria
Anxiety
Denial
Optimism
Fear
Optimism
Desperation
Relief
Hope
Panic
Capitulation
Despondency
Depression
09
THE CENTER:
CONSISTENT
PROFITABILITY
Eventually we’ve come to the center of the
borromean rings. This is the ultimate goal of our
trading journey and this is where we want to
position ourselves as a trader. The center is where
consistent profitability is found, having a perfect
balance and mastery of the other 3 rings. When
you find yourself in this zone, focus on staying in it.
4
10
CONSISTENCY
IS KEY
Being consistently profitable means
that the probability of profits of
your trading strategy are in
your favour.
We can’t avoid our emotions, but we
can learn to work around them…
Dealing with your emotions plays a
crucial part between winning and
losing in trading.
11
WHAT IS A
CRYPTOCURRENCY
EXCHANGE?
The exchange is your middle man.
capital. You have immediate access
The company that makes it possible
to your capital in case you want to
for you to trade the markets the way
withdraw.
you want. They are a company that
execute trades for their clients.
Any profit or loss that you might
make when trading is instantly
An exchange allows you to fund a
shown on your balance.
trading account with your own
HOW TO CHOOSE
AN EXCHANGE?
There are many good exchanges you
I’ll just talk you through a couple of
can choose from so let’s give you a
aspects you might want to check out
summary on what is important before
beforehand as I care for my fellow
you deposit your precious money into a
traders or followers.
trading account.
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Security
Commission costs / Spread
Most exchanges are financial institutions
Always keep an eye on the commission
and they need to be regulated by
costs, no matter how you trade or what
financial authorities in their country. It is
kind of trader you are, you’ll always pay
crucial that you check the exchange’s
commissions on your trades and pay the
website and see what authority regulates
spreads. Higher commissions and
it. If you don’t find any, we would
spreads have an impact on your profits.
recommend staying away from them.
You can compare exchanges to see
Using them as your broker poses a
which one would suit you best.
serious risk to your capital, as there is no
financial control entity that enforces
them to follow their own rules.
Execution
When you want to enter the market,
Deposit / Withdrawal
brokers have to ‘fill’ your position. There is
no reason, in normal market conditions,
When you start to become a more
why your broker wouldn’t do that. If you
experienced trader, you’ll want to start
press buy or sell at a given price, that is
funding your real account or withdraw
the price where your entry should be at
your profits. Your exchange has no
taking the spread into account. If you find
reason for making this hard for you. They
that your entry price is often different
hold your money only to make trading
from the price you pressed buy or sell at,
easier for you, so the withdrawal
you might want to change brokers.
progress should be fast and smooth.
Customer service
Amount of cryptocurrencies
Like we are not perfect, exchanges aren’t
Although you can make use of multiple
either. There is always a small chance
exchanges to find the asset you want to
that problems will arise. But it is very
trade, it is always more convenient to
important to be able to get in touch with
have an exchange that has a very big
them easily. Look for an exchange that has
selection of cryptocurrencies available.
good customer service with fast reactions
or possibly even a live support chat.
13
HOW TO OPEN AN
ACCOUNT WITH BINANCE?
The exchange I recommend to start with is
They also offer one of the most
Binance.
user-friendly experiences in the
cryptocurrency space for buying and
Binance is an award-winning exchange and
selling cryptocurrencies.
is one of the exchanges with the biggest
selection of cryptocurrencies.
Binance is the largest regulated
cryptocurrency exchange platform in the
They are recognized for their low spreads,
world. This makes them a very trustable
fast executions and excellent customer
exchange.
service.
Step 1) Go to www.binance.com & click on “Register Now”
Step 2) Fill out your details
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Step 3) Verify
your e-mail
Step 4) Select
“Deposit Cash”
Step 5) Verify
your identity
6) Choose your deposit currency and complete the deposit details
7) When the deposit is processed go to markets
8) Because most of the cryptocurrencies aren’t able to be purchased directly with normal
currencies like dollar or euro we advise to convert your local currency to usdt (a digital dollar).
Depending on your deposit currency, search for local currency/usdt ( eur/usdt for example) if
you need usdt for your trade.
15
9) select Spot and Market
10) sell your local currency (euro in this example). In return,
you will get the equivalent in usdt (cryptocurrency dollar)
11) Start trading when we post a signal (the pair will be provided)
16
HOW TO USE THE
MOBILE APP
You can also use the mobile application from Binance.
3) Search your trading pair
1) Download
5) Enter the buy
the Binance app
or sell information
2) Click
on markets
4) Click on buy or sell
if you are looking to buy
or sell a cryptocurrency
17
THE DIFFERENT TYPES
OF MARKET ORDERS
• Market execution
It is important to understand the
• Limit orders
difference between the 4 because
• Stop-limit orders
whenever you place a trade, you will
• OCO
see one of these order types.
Market execution
You enter the trade immediately at that specific price.
You market buy with the amount you are willing to spend
depending on your balance.
Limit orders
Buy Limit: Order placed below current price. When the price hits the Buy limit, you enter
the trade with the amount you are willing to buy and you expect the price to go up.
Sell limit: Order placed above current price. When price hits the sell limit,
you enter the trade with the amount you are willing to sell (if not all) to take your profit.
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*vet/usdt pair
Stop-limit
buy stop-limit: Order placed above current price. When price hits the stop it triggers a buy limit.
Although this means buying at a higher price, you can have more confirmation when
price breaks a previous resistance and expect it to keep rising.
sell stop-limit: Order placed below current price. When price hits the stop it triggers a sell limit.
Although this means selling at a lower price, you can have more confirmation when
price breaks a previous support and expect it to keep dropping to limit your losses.
*btc/usdt pair
Oco order
Oco stands for One Cancels the Other. This combines both a limit order and stop-limit order.
Once one of the 2 is triggered the other gets cancelled. This can be used to put in
a profit taking order (limit order at target area) and loss taking order (stop limit).
*xrp/btc pair
OCO sell limit
Entry
OCO stop limit
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TRADE
MANAGEMENT
The next thing I will explain is how to manage
The moment the trade goes against us, the
your open positions. The first thing you
trade will close at the price we bought and
should do is make sure that your winners
losses will be avoided.
don’t turn into losers. We can do this by
putting our trades break-even.
When you bought bitcoin at 50,000 dollars
and 2 days later it is worth 55,000 dollars,
This means that when a trade is running in
you can place a stop-limit to sell bitcoin at
profit for a certain amount, we can place a
50,000 dollars in case it drops again.
stop-limit at our entry price. This way we
ensure we won’t take a loss anymore.
20
PAY THE TRADER
The second thing you should keep in mind when trading is to always pay the trader.
Securing profits will make sure you earn money even when the trade turns against
you after all. You can do this by selling some of your cryptocurrency holdings.
21
HOW TO RECOGNIZE
WHEN TO BUY & SELL
A CRYPTOCURRENCY?
Now that you know how to buy and sell a
using the price history of an asset to make
cryptocurrency through the different types of
new calculated decisions.
orders, I am also going to teach you some
examples on how to analyze and predict
If price history shows us where buyers and
buy and sell signals in the market.
sellers have been doing business in the past,
we can use these areas to purchase or sell
ourselves at the best possible time with the
One of the most popular methods of trading
least amount of risk.
is using technical analysis. This is
Some examples:
The easiest way for you to spot supply and demand levels on your chart is with support
and resistance levels. These levels where price continually bounces from show a
consistent level where price is finding an oversupply and a level where demand grows.
Supply level
Demand level
By identifying where price is previously going up and
down, we can buy or sell in these areas ourselves.
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Trend
higher
Price pulls back into
demand zone
If we can use this strategy in confluence with the trend, we can find the perfect buy
areas to place orders ourselves. If we are uptrending and we naturally expect prices to
go higher in the long run, it would be smart to identify previous strong purchase areas
and place a buy order here.
Price rejects
resistance level
Price breaks
resistance and
moves higher
We can also use another strategy and
the market anymore. This will likely mean
catch price breakouts. If we identified
prices will continue to go higher after a
previous strong buy and selling areas,
breakout.
we can also act on a breakout of these
once price breaks above or below.
There are many more ways to
accurately analyze a chart using proven
If the price is not going down from a
methods. Finding the right guidance and
previous selling area anymore, it might
mentorship into what works and doesn’t
suggest sellers are exhausted and not in
work remains key.
23
WHAT
ARE
NFTS?
Non-fungible tokens (NFTS)
are tokens similar in nature
to cryptocurrencies.
While every Bitcoin is identical,
non-fungible tokens are unique.
NFTs are like plane tickets - they all
look the same, but each have a
different seat and destination.
NFTs are non-fungible, like physical
assets that you can sell in a
marketplace, unlike cryptos, which are
fungible like physical currencies since
bitcoins are exchangeable directly.
Non-fungible tokens are ideal for
creating digital versions of
collectibles like art and trading cards.
Unlike a standard coin, which is
identical to every other, a rare
baseball trading card is unique
among virtually all others.
Other use cases include digitizing our
identities and proving ownership of
things like real estate.
NFTs are often based on the
Ethereum blockchain, in the form of
ERC-721 tokens.
These tokens can be bought and
sold on second-hand marketplaces.
24
See that first edition rare pokemon card that’s being sold online for
thousands of dollars? An NFT is exactly the same with the only
difference being that it’s not a physical asset that's sold online but a
digital one. Instead of the buyer receiving a physical card, the buyer
receives a digital asset with proof of ownership.
And because collectors, fans, enthusiasts, … all like to have a unique
collectible and pay for it, there’s a whole trading market for it. Just like
people buy and sell a physical pokemon card, football card, baseball
card, … for profit.
HOW TO START
TRADING NFTS
Simply buying and selling NFTS is the easiest and most obvious
way to get involved in NFT trading. If you search for NTFS for
sale, you can use an app or marketplace dedicated to NFTS.
While there are plenty of
marketplaces to choose from, one
of the most popular ones today is
opensea.
If you want to buy and sell NFTS on
any marketplace however, you first
need a private wallet. A place to
store your digital assets (like a real
wallet where you would store your
fiat money, driver license, ID, …).
25
Step 1) Google
Step 2) Create
“download metamask”
wallet
Step 1) Send Ethereum
to your wallet address
You have previously learned how to buy
Binance is a cryptocurrency marketplace
cryptocurrency on Binance. NFTS are
and Opensea is a NFT marketplace so
almost always bought and sold with
these 2 are completely independent from
cryptocurrencies on these marketplaces.
each other. Buying and sending your
Ethereum on Binance to your own wallet
Ethereum is one of the more popular
will make sure you have the funds to start
ones required to buy and sell with.
trading on Opensea.
Start exploring and trading!
26
WHAT IS
PLAYTOEARN?
The introduction of NFTS didn’t only spark
digitized unique assets with specific
interest in the digital collectible market
traits? Using this technology game
but also in the gaming industry.
developers are able to turn any in game
Remember that we said NFTS are
asset into an NFT as well.
Have you been playing a game for a long
strong weapon and piece of armor from the
time and got a really strong piece of
minute you get started. See how the industry
equipment (weapon, armor, accessories, …)
works?
from defeating a “boss” or clearing a
“dungeon”? Instead of selling this for in game
PlayToEarn gaming basically brings any
gold you could sell this online on an NFT
in-game economy to the real world with real
marketplace for real money.
dollars or euros to be made making this a
gamers dream or a fun side hustle! While
Vice versa you could also purchase NFTS to
there are multiple examples out there (and
give you an early edge instead of playing
growing!) I’ll go a little bit deeper on one of
10-100 hours first to get strong in a specific
The first P2E games I played last year:
game. Buying an incredibly
Wonderhero.
27
WONDERHERO
Wonderhero is a mobile PlayToEarn
characters (called heroes in game) and
game that utilizes NFTS for literally
equip them with a compatible weapon.
everything. This also means everything
in the game can be bought and sold
Just by playing the game daily you can
online.
get new heroes, weapons, equipment as
quest rewards. And because every
The game is a turn based rpg that
in-game asset is actually an NFT
requires the player to own 3-4
everything can be sold online for a profit.
28
YIELD FARMING
Did you know the cryptocurrency
markets also offer the possibility of
earning guaranteed interest on your
assets? Generating a passive income
without any effort?
There are a ton of protocols nowadays
that offer extremely high rewards just by
putting your cryptocurrencies “to work”.
It’s not that difficult either as these
protocols do the work for you while you
just sit and relax.
Connecting your private wallet like
Practically this would mean buying 1
metamask to these websites you can earn
ethereum with a yearly interest of 200%
immense amounts of interest on your
would turn this into 3 ethereum. Meanwhile
holdings. Sometimes offering X % interest
ethereum might also have gone up from
yearly depending on the cryptocurrency you
$2,000 to $4,000 amplifying your profits a lot
are holding.
more.
If you buy Ethereum for example as an
Did you even know there are stablecoin yield
investment because you expect it to do well
farming pools out there? A stablecoin is a
the next few years. Wouldn’t it make sense
coin that typically represents the digital
to earn interest on your investment if you are
dollar. It doesn’t go up or down in value as it
holding it anyway?
will always represent 1 dollar.
Stablecoins
Gemini Dollar
(GUSD)
Tether
(USDT)
USD Coin
(USDC)
Paxos
Standard
(PAX)
True USD
(TUSD)
Binance USD
(BUSD)
DAI
(DAI)
29
You could still lose money investing into
It’s exactly the same as getting 10% yearly
cryptocurrency with high interest yield
interest on your euro or dollar bank account
farming pools (although you are reducing the
(or any other local currency depending on
risk a lot). If you buy ethereum for $2,000 and
where you are from). Compare this with
it drops to $500 after a year with a 200% apy
0,01% from the banks or even less and the
pool you would end up with $1,500 ( 3
choice becomes easy.
Ethereum).
Using the wonder of compound interest
There are stablecoin yield farming pools with
every year and you would be compelled to
10% or more guaranteed apy. While this
not ever hold any amount of money on your
does not seem that high compared to other
bank accounts any more. Only to withdraw
coin pools out there, this is pure guaranteed
your stablecoins to your bank whenever you
profit as a stablecoin doesn’t fluctuate and
need them again.
stays the same value always.
Important to also mention that yield farming
isn't always risk free in itself. Some protocols
offer high returns from "collateralized" capital
meaning this could all fall apart and losing
your starting funds in the process.
So it's not always recommended but
nonetheless yield farming exist.
30
AND MANY MORE
You already noticed by now that the
I try to provide as much content as I possibly
cryptocurrency markets aren’t just about
can as I feel everyone should have the right
trading anymore. While this used to be the
to access this information but I'm still limited
case in the early days, the introduction of
by the sheer amount of content I can provide
DeFi changed it all.
in a single pdf.
We have participants entering the crypto
My twitter acount goes a lot more in depth.
space with no single interest in trading at all
You are always welcome to take a look and
because of all the other possibilities out
follow my content
there (passive income, digital collectibles,
earning money through gaming, …).
31
DISCLAIMER
Caution! Trading involves the possibility of
financial loss. Only trade with money that you
are prepared to lose, you must recognize that
factors outside your control you may lose all of
the money in your trading account.
No one has knowledge on the level of money
you are trading with or the level of risk you are
taking with each trade. You must make your
own financial decisions.
32
Follow me
For more trading
tips & tricks
@CryptoGirlNova
Everything you need to know
to Start Crypto trading
Visit my twitter:
@CryptoGirlNova